Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

economic and cost analysis class Annual Worth Analysis. it required in excel. thanks for your help ANNUAL WORTH ANALYSIS 89 Problems Wish-Tech Inc. is considering

image text in transcribed

economic and cost analysis class Annual Worth Analysis. it required in excel. thanks for your help

ANNUAL WORTH ANALYSIS 89 Problems Wish-Tech Inc. is considering buying a Supply Chain Management (SCM) System to improve inventory tracking in their warehouses. Data, in the table below, has been collected for three systems. If the market interest rate is 12%, which system should be selected? Use AW analysis. Data Initial Cost $12,000 $9,000 $10,000 Annual Benefits/ Year $500 $100 $ 400 Annual Cost/ Year $100 $50 $125 Salvage Value $3,500 $1,500 $2,500 Life 25 15 20 The table below shows financial data for two lighting systems alterna- tives. Select the best alternative using AW analysis if the market interest rate = 10% Data Alternative A Alternative B Initial Cost $45,000 $120,000 Annual Benefits/Year $12,000 $18,000 Annual Cost/ Year $3,000 $3,500 Salvage Value $15,000 $40,000 Useful Life in years 8 Select the best alternative from the following using the AW analysis. The interest rate is 12%. Machine 1 Machine 2 Machine 3 Initial cost $12,000 $11,000 $15,000 Annual benefit/ Year $2,000 $2,500 $3,500 Salvage value $3,000 $4,500 0 4 years 6 Years Out manufacturing company is looking to replace Life

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Auditing And Forensic Accounting

Authors: Tommie W Singleton, Aaron J Singleton, G Jack Bologna, Robert J Lindquist

4th Edition

047056413X, 9780470564134

More Books

Students also viewed these Accounting questions

Question

1. What causes musculoskeletal pain?

Answered: 1 week ago